Amazon Begins Trading in Triple Digits Following 20-1 Stock Split
First announced in March, the 20-1 split took effect on Monday, June 6th and dropped the price from $2,447 to $122.35.
The move comes after years of lobbying by investors to split the stock and open investment up for more individuals. For many investors in brokerages that don’t offer fractional share trading, a price per share in the thousands puts the stock out of their reach. The newly reduced share price should go a long way to reaching these previously out of reach investors.
Unfortunately, this increased investor turnout has yet to materialize, as the stock has been down since the split. It will likely take a while for the split to become common knowledge among retail investors, so there could be a delayed uptick in interest.
Also Read: Musk Threatens to Walk Away From Twitter Deal Over Bot Accounts Dispute
Amazon’s stock has been in correction mode for months, having lost a third of its value since peaking in November 2021. The stock split was likely a move by management to curb this downtrend trend. It didn’t work so well, as the stock continued its slide even after the split took effect.
Investors looking to buy the dip can now buy 20x more shares. Whether now is the time to buy or if there is more downward pressure coming is hard to say, but their current P/E of 59 could mean that it’s ripe for further trimming.
Amazon closed trading today at $121.18 per share, down -1.48% on the day. YTD, AMZN stock is down -28.88%.
Learn more about Amazon: Website | Investor Deck | AMZN Chart
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Disclaimer: Wealthy VC does not hold a position in any of the stocks mentioned in this article.
